Serracon Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC425064 (Scotland)

Unaudited Financial Statements for the Year Ended 31 December 2018

for

Serracon Limited

Page

Balance Sheet

1

Notes to the Financial Statements

3

FIXED ASSETS

Intangible assets

4

419,219

651,804

Tangible assets

5

550,542

598,754

969,761

1,250,558

CURRENT ASSETS

Stocks

1,888,036

1,526,185

Debtors

6

1,234,611

1,171,419

Cash at bank

155,269

165,328

3,277,916

2,862,932

CREDITORS

Amounts falling due within one year

7

(1,780,622

)

(1,346,650

)

NET CURRENT ASSETS

1,497,294

1,516,282

TOTAL ASSETS LESS CURRENT LIABILITIES

2,467,055

2,766,840

CREDITORS

Amounts falling due after more than one year

8

(1,801,669

)

(1,931,868

)

PROVISIONS FOR LIABILITIES

(41,663

)

(40,589

)

NET ASSETS

623,723

794,383

CAPITAL AND RESERVES

Called up share capital

2,008

2,000

Retained earnings

621,715

792,383

623,723

794,383

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 28 March 2019 and were signed on its behalf by:

Mr R Paterson - Director

1.	STATUTORY INFORMATION

Serracon Limited is a private company, limited by shares, domiciled in Scotland, registration number SC425064.

The registered office is 1 Wheatfield Road, Dunnikier Business Park, Kirkcaldy, Fife, KY1 3PD.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents net invoiced sales of goods in respect of machine tool accessories and products, excluding

value added tax. Sales are recognised at the point at which the goods are delivered.

Goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over their fair value of net

assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated

amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is

amortised on a systematic basis over its expected life, which is 5 years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Royalties are being amortised evenly over their estimated useful life of five years.

Research and development are being amortised evenly over their estimated useful life of five years.

Tangible fixed assets and depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Heritable property

-

5% on cost

Tenants improvements

-

5% on cost

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

33% on reducing balance and 25% on reducing balance

Computer equipment

-

33% on reducing balance

Tangible fixed assets are stated at cost less depreciation. Cost represent purchase price together with any

incidental costs of acquisition.

The directors have considered the residual value of all tangible fixed assets to be immaterial and therefore all

tangible fixed assets are depreciated to nil value.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items. Cost is represented by purchase price.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at

the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under

finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.The

interest element of these obligations is charged to profit or loss over the relevant period. The capital element of

the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Provisions

Provisions are recognised when the company has a legal or constructive obligation as a result of a past event, it is

probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably

estimated. Provisions are not recognised for future operating losses. Provisions are discounted where the time

value of money is material.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is

determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of

an outflow with respect to any one item included in the same class of obligations may be small.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 36 (2017 - 33 ) .

4.	INTANGIBLE FIXED ASSETS

Research

and

Goodwill

Royalties

development

Totals

£

£

£

£

COST

At 1 January 2018

1,102,000

7,500

384,705

1,494,205

Additions

-

-

30,549

30,549

At 31 December 2018

1,102,000

7,500

415,254

1,524,754

AMORTISATION

At 1 January 2018

630,000

7,500

204,901

842,401

Amortisation for year

188,800

-

74,334

263,134

At 31 December 2018

818,800

7,500

279,235

1,105,535

NET BOOK VALUE

At 31 December 2018

283,200

-

136,019

419,219

At 31 December 2017

472,000

-

179,804

651,804

5.	TANGIBLE FIXED ASSETS

Fixtures

Heritable

Tenants

and

property

improvements

fittings

£

£

£

COST

At 1 January 2018

157,232

65,007

251,951

Additions

-

60,753

91,143

Disposals

-

-

(112,675

)

At 31 December 2018

157,232

125,760

230,419

DEPRECIATION

At 1 January 2018

22,897

10,607

87,517

Charge for year

7,861

4,985

49,905

Eliminated on disposal

-

-

(44,292

)

At 31 December 2018

30,758

15,592

93,130

NET BOOK VALUE

At 31 December 2018

126,474

110,168

137,289

At 31 December 2017

134,335

54,400

164,434

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2018

352,484

78,377

905,051

Additions

62,556

15,653

230,105

Disposals

(124,448

)

(8,907

)

(246,030

)

At 31 December 2018

290,592

85,123

889,126

DEPRECIATION

At 1 January 2018

149,847

35,429

306,297

Charge for year

69,807

17,270

149,828

Eliminated on disposal

(66,164

)

(7,085

)

(117,541

)

At 31 December 2018

153,490

45,614

338,584

NET BOOK VALUE

At 31 December 2018

137,102

39,509

550,542

At 31 December 2017

202,637

42,948

598,754

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 January 2018

278,443

Additions

34,556

Disposals

(88,397

)

At 31 December 2018

224,602

DEPRECIATION

At 1 January 2018

118,487

Charge for year

58,167

Eliminated on disposal

(57,390

)

At 31 December 2018

119,264

NET BOOK VALUE

At 31 December 2018

105,338

At 31 December 2017

159,956

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.18

31.12.17

£

£

Trade debtors

1,114,086

1,028,412

Other debtors

120,525

143,007

1,234,611

1,171,419

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.18

31.12.17

£

£

Bank loans and overdrafts

95,061

93,645

Hire purchase contracts

34,943

67,518

Trade creditors

101,796

115,741

Taxation and social security

143,254

145,766

Other creditors

1,405,568

923,980

1,780,622

1,346,650

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.18

31.12.17

£

£

Bank loans

252,992

356,411

Hire purchase contracts

18,370

36,506

Other creditors

1,530,307

1,538,951

1,801,669

1,931,868

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.18

31.12.17

£

£

Hire purchase contracts

53,313

104,024

Bank loans

345,678

441,756

Factoring creditor

723,653

571,254

1,122,644

1,117,034

Balances due under hire purchase agreements are secured upon the assets to which they relate.

Personal guarantees have been extended by company shareholders in relation to the bank loans.

The factoring creditor is secured over the debts to which the factoring facility relates to.